Net Commerce, Chip Cards to Gain Fast, Study Predicts

By Bloom, Jennifer Kingson | American Banker, January 29, 1997 | Go to article overview
Save to active project

Net Commerce, Chip Cards to Gain Fast, Study Predicts

Bloom, Jennifer Kingson, American Banker

Internet commerce will become a $7.3 billion business by 2000, and credit cards will continue to be the payment instrument of choice for items over $10, according to a new study by Jupiter Communications.

The New York-based electronic commerce consultancy has high hopes for smart cards, predicting that they will make dramatic inroads this year and will account for 26% of on-line transactions by 2000.

"It really seems like there's this kind of gang-up behind credit cards first, smart cards second," said Scott Smith, group director of the digital commerce group at Jupiter and chief author of the report.

Jupiter also predicts that digital cash and checks will gain steady acceptance. In the realm of microtransactions-on-line purchases of items that cost less than $10-the company believes that electronic coins and checks will be used for 40% of Internet purchases by 2000.

Today, credit cards account for more than 90% of on-line consumer payments.

"For now, to the extent that they buy items on-line, consumers are comfortable with using plastic," Mr. Smith said.

"But as new kinds of plastic emerge, like smart cards, and new types of pay-per-use services are created for the Internet, consumer behavior will change."

According to Jupiter's Internet Payments Report, the average number of transactions per on-line household will climb from today's rate of nine per year to 120 per year by 2000, as more low-value goods and services become available through the World Wide Web.

New on-line payment mechanisms are being introduced constantly by a variety of companies large and small. Jupiter predicts that existing companies like Visa, MasterCard, and American Express will ultimately be the ones to profit most from electronic commerce.

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
Loading One moment ...
Project items
Cite this article

Cited article

Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

Cited article

Net Commerce, Chip Cards to Gain Fast, Study Predicts


Text size Smaller Larger
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

While we understand printed pages are helpful to our users, this limitation is necessary to help protect our publishers' copyrighted material and prevent its unlawful distribution. We are sorry for any inconvenience.
Full screen

matching results for page

Cited passage

Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.

Are you sure you want to delete this highlight?